U.K. lawmakers criticized the Financial Conduct Authority for allowing Kazakh mining company ENRC Corp. to sell shares on the London Stock Exchange in 2007, when there was alleged evidence of corruption, and for permitting the company to delist its shares on Monday amid a fraud investigation.
David Lawton, director of markets at the FCA, which authorizes share sales in London, should have known about a report that raised questions about alleged corruption before ENRC sold shares, Conservative lawmaker Brian Binley said during a hearing in Parliament on Tuesday. Lawton also should have had knowledge about which banks prepared ENRC’s share sale and about alleged corruption at mining assets in the Democratic Republic of Congo, Labour lawmaker Ann McKechin said.
This report also notes concerns about Glencore Xstrata.
Last year, LMN published a report calling for stricter regulation of mining companies listed in the UK – not only on grounds of corporate governance but also because of human rights and environmental concerns. The FCA’s David Lawton made very clear to MPs that the FCA is not interested in regulating companies’ conduct in these matters.